In the last issue of the BULLETIN, it was reported that because of recent amendments to the License Law, the license of a real estate broker or salesman may now be suspended or revoked if he violates the License Law even when selling or leasing his own property (G.S. 93A-6(b)(1)).

Since that BULLETIN, the Board staff and its field representatives have received numerous inquiries from licensees requesting a clarification of the new law. Specifically, they are asking "What must I now do to comply with the License Law when selling or leasing my own property?"

When selling or leasing your own property, you are not required to do anything more than an unlicensed seller or lessor is required to do. For example, you are not required to deliver closing statements or copies of agreements to the parties; or to deposit earnest monies or rents into a trust account (see "Trust Accounts" below); or to retain transaction records . . . BUT . . . if during the sale or leasing of your own property your conduct is found to have included improper, fraudulent or dishonest dealing or the making of false promises or misrepresentations, your real estate license may be suspended or revoked by the Board.

Although you are not required to identify yourself as a broker or salesman when advertising the sale or lease of your own property, you are strongly encouraged to identify yourself as being licensed in all such advertising and to disclose your license status to the parties with whom you are dealing, certainly before the execution of any sales agreement, lease, etc.

When acting as agent for another or others in the selling or leasing of property in which you have an ownership interest (or in the purchasing of property in which you will acquire an ownership interest), you should disclose such interest (or potential interest) to the parties with whom you are dealing, certainly before the execution of any sales agreement, lease, etc.

When selling or leasing your own property, you must not place earnest money deposits, tenant security deposits, or rents in your brokerage trust account because as a seller or  lessor you would have a direct, personal interest in such funds . . . BUT . . . in accordance with G.S. 42-50, landlords must deposit tenant security deposits on residential dwelling units in a trust account (other than your brokerage trust account) or furnish a bond for the amount of such deposit(s)